Agricultural Growth Rural Poverty And Environmental Degradation

In his study of the poverty alleviation programmes, the author finds that even though the poorest of the poor are relatively efficient in utilizing the assistance they receive, the schemes themselves are heavily dependent on the bureaucracy, leading to inefficiencies and leakages. Environmental degradation is attributed to the slow rate of land-augmenting technological change and the inequitable distribution of gains resulting in pressure on the environment from the poor as well as the affluent. On account of the low rate of capital formation and relatively efficient use of available resources, the author sees little scope for raising agricultural output in India merely by freeing the markets. On the basis of his study, Dr Rao recommends stepping up public investment in agriculture, especially in irrigation and research, as essential to raise the growth rate, and to realize the possible gains from trade as well as to ensure the equitable sharing of such gains.